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Gradys Company Ltd uses normal costing and departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the
Gradys Company Ltd uses normal costing and departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labour-hours in the Assembly Department. At the beginning of 2019, the following estimates were provided for the coming year:
All Jobs | Machining | Assembly |
Direct labour-hours used | 60,000 | 12,000 |
Machine-hours used | 30,000 | 40,000 |
Direct labour cost | $550,000 | $850,000 |
Manufacturing overhead costs | $420,000 | $240,000 |
The accounting records of the company show the following data for Job #158:
Job #158 | Machining | Assembly |
Direct labour-hours used | 120 | 80 |
Machine-hours used | 70 | 5 |
Direct material cost | $320 | $150 |
Direct labour cost | $100 | $450 |
What is the cost of assembly for Job #158? (Include both direct & indirect costs)
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